Right now, most of the conversations I’m having with buyers and sellers revolve around how COVID-19 is affecting the real estate market. With a huge drop off in the stock market and a huge jump in unemployment, everybody is thinking that we’ll see huge price reductions in the real estate market. However, that’s just not happening. Here’s why.
For this video, I’ll be focusing on the Gresham market, but most PDX area real estate markets are pretty similar.
The median home value in Gresham is right around $363,000 and holding steady. Even though we are seeing fewer buyers than normal, we’re also seeing fewer sellers. Supply and demand are slowing down at the same time, which is keeping prices stable.
However, don’t think this market has come to a halt. We see home sales happen every day. Homes are still selling quickly as long as they are priced correctly. We’re not seeing as many multiple offer situations, which is allowing buyers to get homes for more affordable prices.
The biggest issue for sellers right now is pricing. If you try to price your home above market value, you’ll have to reduce that price and it will lose you more money in the end than it would have if you just priced correctly from the start.
How will the pandemic affect our market in the future? Foreclosures and pre-foreclosures have ticked up, and we will be seeing them hit the market. If our economy goes back to somewhat normal in the next few months, we will see these foreclosures get soaked up by the market and not negatively affect prices. If we see unemployment rates rise and a rollback of businesses, we could easily see the foreclosures negatively affect the market and flip things from a seller’s market to a buyer’s market.
If you have questions about the pandemic’s effects on your home’s value or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.